DROPBOX INC-CLASS A (DBX)
US26210C1045 - Common Stock
Taking everything into account, DBX scores 5 out of 10 in our fundamental rating. DBX was compared to 279 industry peers in the Software industry. DBX has an excellent profitability rating, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on DBX.
1. Profitability
1.1 Basic Checks
In the past year DBX was profitable.
DBX had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: DBX reported negative net income in multiple years.
In the past 5 years DBX always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 22.39%, DBX belongs to the best of the industry, outperforming 97.13% of the companies in the same industry.
DBX's Return On Invested Capital of 30.25% is amongst the best of the industry. DBX outperforms 98.21% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DBX is above the industry average of 12.23%.
The 3 year average ROIC (15.34%) for DBX is below the current ROIC(30.25%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.39% | ||
| ROE | N/A | ||
| ROIC | 30.25% |
ROA(3y)14.62%
ROA(5y)6.23%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)15.34%
ROIC(5y)N/A
1.3 Margins
DBX has a better Profit Margin (22.71%) than 90.68% of its industry peers.
DBX has a Operating Margin of 20.01%. This is amongst the best in the industry. DBX outperforms 87.81% of its industry peers.
DBX's Operating Margin has improved in the last couple of years.
DBX has a better Gross Margin (82.43%) than 88.17% of its industry peers.
DBX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.01% | ||
| PM (TTM) | 22.71% | ||
| GM | 82.43% |
OM growth 3Y34.27%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.07%
GM growth 5Y2.45%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DBX is creating value.
The number of shares outstanding for DBX has been reduced compared to 1 year ago.
The number of shares outstanding for DBX has been reduced compared to 5 years ago.
Compared to 1 year ago, DBX has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.74, we must say that DBX is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of DBX (1.74) is comparable to the rest of the industry.
DBX has a debt to FCF ratio of 1.98. This is a very positive value and a sign of high solvency as it would only need 1.98 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.98, DBX is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 1.74 |
ROIC/WACC2.76
WACC10.98%
2.3 Liquidity
DBX has a Current Ratio of 0.87. This is a bad value and indicates that DBX is not financially healthy enough and could expect problems in meeting its short term obligations.
DBX's Current ratio of 0.87 is on the low side compared to the rest of the industry. DBX is outperformed by 79.21% of its industry peers.
DBX has a Quick Ratio of 0.87. This is a bad value and indicates that DBX is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of DBX (0.87) is worse than 78.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.63% over the past year.
The Earnings Per Share has been growing by 37.83% on average over the past years. This is a very strong growth
Looking at the last year, DBX shows a small growth in Revenue. The Revenue has grown by 3.01% in the last year.
DBX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.44% yearly.
EPS 1Y (TTM)20.63%
EPS 3Y28.86%
EPS 5Y37.83%
EPS Q2Q%7.14%
Revenue 1Y (TTM)3.01%
Revenue growth 3Y9.34%
Revenue growth 5Y12.44%
Sales Q2Q%0.92%
3.2 Future
DBX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.38% yearly.
The Revenue is expected to grow by 2.37% on average over the next years.
EPS Next Y20.74%
EPS Next 2Y14.42%
EPS Next 3Y10.32%
EPS Next 5Y5.38%
Revenue Next Year1.82%
Revenue Next 2Y1.2%
Revenue Next 3Y1.36%
Revenue Next 5Y2.37%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.27, which indicates a correct valuation of DBX.
Based on the Price/Earnings ratio, DBX is valued cheaply inside the industry as 91.04% of the companies are valued more expensively.
DBX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.73.
Based on the Price/Forward Earnings ratio of 11.61, the valuation of DBX can be described as reasonable.
Based on the Price/Forward Earnings ratio, DBX is valued cheaper than 92.11% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, DBX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.27 | ||
| Fwd PE | 11.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DBX is valued cheaper than 87.10% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DBX indicates a rather cheap valuation: DBX is cheaper than 94.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.01 | ||
| EV/EBITDA | 15.06 |
4.3 Compensation for Growth
DBX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of DBX may justify a higher PE ratio.
PEG (NY)0.64
PEG (5Y)0.35
EPS Next 2Y14.42%
EPS Next 3Y10.32%
5. Dividend
5.1 Amount
DBX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DROPBOX INC-CLASS A
NASDAQ:DBX (12/20/2024, 8:04:52 PM)
After market: 31 +0.75 (+2.48%)30.25
+0.46 (+1.54%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners93.39%
Inst Owner Change-1.07%
Ins Owners4.25%
Ins Owner Change-1.44%
Market Cap9.37B
Analysts52.22
Price Target28.39 (-6.15%)
Short Float %8.01%
Short Ratio6.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.59%
Min EPS beat(2)11.62%
Max EPS beat(2)13.55%
EPS beat(4)4
Avg EPS beat(4)10.97%
Min EPS beat(4)3.15%
Max EPS beat(4)15.54%
EPS beat(8)8
Avg EPS beat(8)10.52%
EPS beat(12)12
Avg EPS beat(12)9.27%
EPS beat(16)16
Avg EPS beat(16)10.34%
Revenue beat(2)0
Avg Revenue beat(2)-0.48%
Min Revenue beat(2)-0.7%
Max Revenue beat(2)-0.25%
Revenue beat(4)0
Avg Revenue beat(4)-0.48%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)-0.25%
Revenue beat(8)2
Avg Revenue beat(8)-0.16%
Revenue beat(12)3
Avg Revenue beat(12)-0.17%
Revenue beat(16)7
Avg Revenue beat(16)-0.08%
PT rev (1m)5.7%
PT rev (3m)3.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)21.52%
EPS NY rev (1m)6.14%
EPS NY rev (3m)6.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.27 | ||
| Fwd PE | 11.61 | ||
| P/S | 3.69 | ||
| P/FCF | 11.01 | ||
| P/OCF | 10.64 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.06 |
EPS(TTM)2.28
EY7.54%
EPS(NY)2.61
Fwd EY8.61%
FCF(TTM)2.75
FCFY9.08%
OCF(TTM)2.84
OCFY9.4%
SpS8.2
BVpS-1.76
TBVpS-3.39
PEG (NY)0.64
PEG (5Y)0.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.39% | ||
| ROE | N/A | ||
| ROCE | 36.98% | ||
| ROIC | 30.25% | ||
| ROICexc | 85.96% | ||
| ROICexgc | N/A | ||
| OM | 20.01% | ||
| PM (TTM) | 22.71% | ||
| GM | 82.43% | ||
| FCFM | 33.51% |
ROA(3y)14.62%
ROA(5y)6.23%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)15.34%
ROIC(5y)N/A
ROICexc(3y)84.07%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)18.75%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y9.78%
ROICexc growth 5YN/A
OM growth 3Y34.27%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.07%
GM growth 5Y2.45%
F-Score7
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.98 | ||
| Debt/EBITDA | 2.41 | ||
| Cap/Depr | 20.76% | ||
| Cap/Sales | 1.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 135.39% | ||
| Profit Quality | 147.56% | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.74 |
F-Score7
WACC10.98%
ROIC/WACC2.76
Cap/Depr(3y)18.59%
Cap/Depr(5y)37.12%
Cap/Sales(3y)1.27%
Cap/Sales(5y)3.26%
Profit Quality(3y)171.3%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)20.63%
EPS 3Y28.86%
EPS 5Y37.83%
EPS Q2Q%7.14%
EPS Next Y20.74%
EPS Next 2Y14.42%
EPS Next 3Y10.32%
EPS Next 5Y5.38%
Revenue 1Y (TTM)3.01%
Revenue growth 3Y9.34%
Revenue growth 5Y12.44%
Sales Q2Q%0.92%
Revenue Next Year1.82%
Revenue Next 2Y1.2%
Revenue Next 3Y1.36%
Revenue Next 5Y2.37%
EBIT growth 1Y42.42%
EBIT growth 3Y46.81%
EBIT growth 5YN/A
EBIT Next Year30.35%
EBIT Next 3Y9.31%
EBIT Next 5Y9.42%
FCF growth 1Y15.58%
FCF growth 3Y15.67%
FCF growth 5Y16.13%
OCF growth 1Y15.05%
OCF growth 3Y11.14%
OCF growth 5Y13%